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What is Delivered Duty Paid DDP in shipping terms?

Delivered Duty Paid (DDP) is an international shipping term where the seller assumes responsibility for the entire shipping process, including arranging transportation, paying for freight charges, and handling customs duties and taxes. Under DDP, the seller ensures the delivery of goods to the buyer’s specified location, clears them through customs, and pays all applicable duties and taxes. This incoterm offers convenience to the buyer, as they are relieved of the burden of dealing with customs procedures and incurring additional costs, making it a hassle-free shipping option for international trade.


When is DDP used?

DDP (Delivered Duty Paid) is commonly used in international trade when the seller wants to provide maximum convenience to the buyer. It is beneficial when the buyer prefers a hassle-free shipping arrangement, as DDP places the seller’s responsibility for transportation, customs clearance, and duty payment. DDP is often employed when the seller understands the foreign market better, has expertise in navigating customs procedures, and is willing to absorb the associated costs and risks. This incoterm ensures that the buyer receives the goods at their location without the need to handle logistics and customs matters.

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